Developments in Money Market and Inter-bank Market (December 19-23, 2022)
1. Forex market and exchange rates:
During the week of December 19-23, 2022, the foreign exchange rates experienced a downward trend. On December 19, the buying and selling exchange rates quoted on the website of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) were at VND 23,540/23,820 per USD, up by 100 VND per USD as compared with the rates of the last working day of the previous week (December 16, 2022). By end of December 23, the exchange rates were quoted at VND 23,430/23,750 per USD, down by 110/70 VND per USD as compared with the rates of December 19, 2022.
2. Inter-bank transaction operations:
2.1. Transactions:
According to the reports submitted by the credit institutions and the foreign bank branches, the total amount of transactions in the inter-bank market within the week reached approximately VND 1,338,609 billion, an average of VND 267,722 billion per day, an increase of VND 15,667 billion per day as compared to the previous week; meanwhile the transaction amount in USD was equivalent to VND 335,743 billion, an average of VND 67,149 billion per day, an increase of VND 3,918 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 92% and 2% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 75% and 18% of the total amount of USD transactions respectively.
2.2. Inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates experienced opposite movements in different terms as compared to those of the previous week. Specifically, the average inter-bank interest rates for overnight and 1-week terms both decreased by 1.35 percentage points, to 3.92% p.a. and 4.71% p.a. respectively. Meanwhile, the average inter-bank interest rate for 1-month term increased by 0.73 percentage points to 8.55% p.a.
- For transactions in USD: The average inter-bank interest rates were relatively stable and experienced slight fluctuations around the rates of the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were stable at 4.22% p.a., 4.24% p.a., and 4.69% p.a. respectively.
The specific average inter-bank interest rates were as follows:
Unit: % p.a
Overnight |
1-week |
2-week |
1-month |
3-month |
6-month |
9-month |
|
VND |
3.92 |
4.71 |
6.49 |
8.55 |
8.36 |
10.34 |
- |
USD |
4.22 |
4.24 |
4.43 |
4.69 |
5.39 |
6.22 |
6.07 |
Translated by Le Hang.